Exhibit 2-4 Production possibilities curve data

A

B

C

D

E

Capital goods
0

10

20

30

40

Consumer goods
200

180

140

80

0

In Exhibit 2-4, if the economy chooses production possibility D rather than production possibility B, it can expect

Question

Exhibit 2-4 Production possibilities curve data

	A	B	C	D	E
Capital goods	0	10	20	30	40
Consumer goods	200	180	140	80	0

In Exhibit 2-4, if the economy chooses production possibility D rather than production possibility B, it can expect

Quizplus · Accepted Answer

Choosing production possibility D over production possibility B means that the economy is investing more in capital goods rather than producing consumer goods. This can lead to more growth in the future as there will be more capital available to produce goods and services, increasing productivity and output. Therefore, option B is the correct answer.

Exhibit 2-4 Production Possibilities Curve Data